Is State Tax Rates Hiking Up The Price Of Vaporizers?
The U.S. tobacco industry is fighting back against efforts by state regulatory bodies and consumers to modify the sale of electric cigarettes. While vaporizers have been around for quite some time and so are becoming more acceptable in mainstream American life, the tobacco companies are determined to fight these efforts vigorously. They’ve made millions of dollars attempting to defeat state taxing and regulation efforts. Now, they’re making their next move: challenging the legality of the taxation themselves. In a new legal filing, they’re claiming that the FDA over regulates and creates a “guaranteed” interstate transportation business. The filing happens to be being contested in the courts, and both sides expect an answer sooner or later soon.
State taxation uprights vaporizers by regulating their sale. It is estimated that about twenty states have uprights to market vaporizer devices, including California, Colorado, D.C., Florida, Hawaii, Illinois, Maryland, Massachusetts, Montana, Nevada, New Hampshire, Oregon, Pennsylvania, and Washington. These states have become rapidly in recent years, and as a consequence, their cigarette tax rates are also growing rapidly. Several same states also have placed taxes on cigar and pipe tobacco. It appears that smoking just gets more costly, and that’s what the tobacco industry is shooting for.
According to the filing with the FDA, the tobacco industry has been targeted unfairly. The tobacco industry does everything they can to fight against regulation of vaporizer devices. As we’ve seen, the U.S. Supreme Court has multiple times ruled against the FDA over-regulation of cigarettes. These rulings have gone the door wide open to regulation of vaporizer devices. The FDA claims that over-regulation defeats the purpose of regulating and controlling the use of vaporizers.
The fact is that the FDA itself is not even required to regulate or control these industries. Only state governments have that authority. It’s the state governments that impose their very own taxes, and several states have imposed increased taxes Vape Pen Battery in an effort to try to curb smoking. But the state governments are themselves at a disadvantage. They cannot regulate wholesale prices since these prices are regulated by state laws. They also can’t tax the product at a higher rate than the authorities does.
Also, the FDA itself is not directly involved in the manufacturing of the vaporizer. Tobacco companies manufacture their very own products, and they are the ones that get sued by the states and levied taxes. The FDA merely approves or denies manufacturer licenses based upon whether these manufacturers follow federal law. And if the manufacturer doesn’t, then your company doesn’t get its license.
So, the states that impose taxes on vaporizer devices don’t get the advantage of having a federal regulator, or perhaps a manufacturer that’s licensed by the state. So, instead, they find ways to increase taxes on the manufactures themselves! That makes no sense. Why are these manufacturers being targeted specifically? There’s no real reason.
THE MEALS and Drug Administration may be the federal body responsible for regulating pharmaceuticals, health supplements and cosmetics. It has the power to ban the production or sale of any chemical or substance that it determines is unsafe. So, why are states attempting to tell the FDA to focus on Vaping online users rather than tobacco manufacturers? The FDA knows that regulating diet pills isn’t likely to work because there are no controlled weight loss supplements currently out there. And, even if there were, they couldn’t force food manufacturers to sell diet pills containing ingredients that are banned by state law.
So, instead, the states are trying to force the FDA to come up with some type of rule or regulation that will require a manufacturer to market their devices in a particular manner, in accordance with state regulations. Which makes no sense at all. It also flies in the face of the original purpose of the Food Drug and Administration Act. Why the FDA is targeting the unit is really a question that only experts in the FDA can answer.